Elder care, repeal of business tax topics at Cass forum

Lawmakers meet county residents to address concerns.

Lawmakers meet county residents to address concerns.

August 11, 2006|YaSHEKIA SMALLS Tribune Staff Writer

CASSOPOLIS -- In a county where the senior population is expected to skyrocket over the next decade and where the economy has been sluggish, legislators are talking. And in Cass County, where health services and schools are losing money and where homelessness concerns have prompted a 10-year plan, officials are fighting an uphill battle. Three state legislators and two legislative aides took the floor Thursday morning at the Cass District Library, where they highlighted community issues and addressed residents' concerns during a Human Service Coordinating Council legislative forum. Present were state Sen. Ron Jelinek, R-Three Oaks; state Rep. Neal Nitz, R-Baroda; state Rep. Rick Shaffer, R-Three Rivers; Mary Judnich, aide to U.S. Sen. Debbie Stabenow, D-Mich.; and Al Pscholka, aide to U.S. Rep. Fred Upton, R-St. Joseph. Two major issues for audience members were long-term care for the elderly, and the elimination of the state's Single Business Tax, which was repealed Wednesday. Revenues from the repealed tax were about $1.9 billion, or 25 percent of the state's discretionary income. Legislators are looking for options to replace the Single Business Tax, which was originally slated to end in 2009 but will be phased out next December. "So we have a great amount of time to do it," Nitz said. "Hopefully we will have some plans ... by the first of the year and start floating out some of those ideas to the House and business communities to see what their thoughts are." The Single Business Tax was the only general business tax levied by the state. Officials are working to maintain and attract businesses, which will be taxed on profitability, not on investment, Jelinek said. In terms of health and human services, state programs have experienced great challenges during the past year, with more baby boomers growing older and demand increasing, Shaffer said. "The question is, is there any hope of funding keeping pace with increasing services to senior citizens?" he said. The single-point-of-entry bill for long-term care that Shaffer sponsored and introduced last fall was approved by the House in May, allowing those needing long-term care to get their information from one source. The legislation guarantees full choice to consumers for where and how they will receive care support, whether in nursing homes or in their own homes, Shaffer said. About 32 other states have the concept in place, whereas this is Michigan's first, he said. The average nursing home resident pays between $4,000 and $5,000 a month, while those in assisted living without Medicaid pay between $2,000 and $3,000 per month. In-home care patients pay $1,000 to $1,500 a month, said Shaffer, chair of the Appropriations Human Services Subcommittee. "The goal is to utilize Medicaid dollars more efficiently," he said. "That's the overall goal of this program." An eight-county program also allows Michigan to allocate $20 million over the next two years for four pilot projects that will offer families counseling on long-term care options, Shaffer said. Pscholka said 10 out of 11 appropriations bills have been passed in the House, excluding the Labor-Health and Human Services budget bill. That's because Upton refused to support the bill unless $7 billion was put back into the budget, Pscholka said. "I expect that appropriations bill to come up right after the break, right after Labor Day," he said. "So Fred was instrumental in making sure that (amount) was restored into the budget." School funding was also on the mind of Jelinek, who said $7,085 per student would be available during the 2006-2007 school year through a basic foundation grant. This is an increase of $210 over last year. High school Michigan Educational Assessment Program (MEAP) tests will also become college entrance tests next spring, as well as a basis for the $2,500 Michigan Merit Award Scholarship for high school seniors. Officials are working to increase the two-year college scholarship, Jelinek said. "We were looking at increasing it, maybe spreading it over four years to encourage kids to go to college, maybe stay in college," he said. Jelinek also highlighted an upcoming bill that will allow low-income housing authorities to own properties for two years without paying taxes. In this way, they can improve the properties and pass savings on to new homeowners, he said. Staff writer YaShekia Smalls: yassmalls@sbtinfo.com (269) 687-7001